Industry Overview - The utility sector has outperformed the broader market, gaining over 18% since the beginning of 2025, following a 19% rally last year, resulting in nearly $500 billion in value increase over two years [2] - The Energy Information Administration projects U.S. power demand to grow to 4,191 billion kilowatt-hours in 2025 and 4,305 billion kWh in 2026, up from a record 4,097 billion kWh in 2024 [1] Capital Investments - The utility sector is expected to invest $1.1 trillion in capital expenditures through 2029 to meet the increasing demand driven by new data centers and rising energy needs [3] Dividend Stocks - The article lists the best utility dividend stocks, focusing on those with an annual dividend yield of at least 3% as of October 22, 2025, and those with significant hedge fund interest [6] Company Highlights - **Brookfield Renewable Corporation (NYSE:BEPC)**: - Dividend yield of 3.81% as of October 22, 2025, with a diversified portfolio in renewable energy [8] - Forecasts over 10% annual FFO per share growth through 2030 and aims to increase cash distributions by 5% to 9% annually [11] - **Dominion Energy, Inc. (NYSE:D)**: - Dividend yield of 4.38% as of October 22, 2025, providing regulated electricity to 3.6 million customers [12] - Plans to invest over $50 billion through 2029 to support expanding power demand, with an expected EPS growth of 5% to 7% annually [13] - Coastal Virginia Offshore Wind project is on track to deliver first power in early 2026 [14] - **OGE Energy Corp. (NYSE:OGE)**: - Dividend yield of 3.66% as of October 22, 2025, with a focus on expanding capacity by approximately 550 MW [16] - Recently received a price target increase from Jefferies, reflecting positive expectations for the upcoming quarter [17]

Core Insights - Brookfield Renewable Corporation (NYSE:BEPC) is recognized as one of the 12 most promising clean energy stocks by Wall Street analysts, positioned to benefit from increasing global electricity demand and AI megatrends [1][2] Company Overview - Brookfield Renewable Corporation has substantial assets in hydro and battery storage, providing a competitive advantage by supporting baseload power and facilitating high-value re-contracting as legacy agreements expire [2] - The company operates approximately 13,948 megawatts of installed capacity across hydroelectric, wind, solar, and storage in Brazil, Colombia, North America, and Europe [2] Financial Performance - Analysts project that Brookfield Renewable's asset recycling strategy and inflation-linked revenues will enable the company to achieve over 10% annual growth in funds from operations (FFO) per share [2] - A recent price target increase from JPMorgan raised the target for BEPC stock to $41 from $39, maintaining an Overweight rating, attributed to an updated clean energy model and revised targets for December 2026 [3]

Core Viewpoint - Brookfield Renewable and Clearway Energy have entered into a strategic deal that enhances their growth profiles and dividend strategies, benefiting both companies and appealing to income-focused investors [2][11]. Deal Details - Deriva Energy, a Brookfield portfolio company, is selling a portfolio of 613 megawatts (MW) of solar energy assets to Clearway Energy, covering eight states, with the transaction expected to close in the second quarter of next year [3]. - Clearway will partner with Fengate Asset Management for 12 of the assets (227 MW) located in the Western U.S. as a 50-50 joint venture [4]. Benefits to Brookfield - Brookfield Renewable's acquisition strategy focuses on large-scale renewable energy platforms, having recently acquired Duke Energy's commercial renewable energy platform, which included 5.9 gigawatts (GW) of operating and under-construction assets and a 6.1 GW development pipeline [5]. - The deal is projected to boost Brookfield's funds from operations (FFO) by 3% per share in 2024, enhancing cash flow and growth visibility [5][6]. - The capital from the sale will be reinvested into higher-returning projects, supporting Brookfield's goal of over 10% FFO per share growth and enabling annual dividend increases of 5% to 9% [6]. Benefits to Clearway Energy - Clearway Energy is acquiring cash-flowing solar assets backed by long-term contracts, planning to invest between $210 million and $230 million, which is expected to generate an average of $27 million in annual cash available for distribution (CAFD) starting in 2027 [7]. - This acquisition positions Clearway to achieve a CAFD of at least $2.50 per share by 2027, nearly 30% above its 2025 guidance midpoint of $2.08 per share [8]. - Clearway anticipates increasing its dividend to approximately $1.98 per share by 2027, representing an over 11% increase from about $1.78 per share this year, while maintaining a payout ratio within the target range of 70% to 80% [9][10]. Conclusion - The transaction between Brookfield's Deriva Energy and Clearway Energy is a win-win, allowing Brookfield to free up capital for new investments while Clearway strengthens its earnings growth and dividend sustainability, making both companies more attractive to income-focused investors [11].

Group 1 - Brookfield Renewable Corporation (NYSE:BEPC) is recognized as one of the 10 most promising green stocks by Wall Street analysts, driven by hedge fund interest and analyst-rated potential [1][3] - RBC Capital has maintained a price target of $31.00 for Brookfield Renewable Corporation (BEPC) with an Outperforming rating, citing strong growth visibility for the renewable energy company [2] - Despite reporting lower-than-expected Q2 2025 profits with an EPS of -$4.16 and sales of $991 million, the company saw a 10% year-over-year increase in Funds From Operations (FFO) to $371 million [2] Group 2 - The company operates a diverse portfolio of hydro, wind, solar, storage, and other sustainable energy assets globally, reinforcing its position as a promising investment [3] - Management aims for double-digit annual FFO per unit growth and long-term total returns of 12-15%, supported by a pipeline of U.S. M&A opportunities and investments in grid reliability technology [2]

Industry Overview - The Zacks Alternative Energy industry is divided into two segments: one focuses on the generation and distribution of alternative energy, while the other is involved in the development and installation of renewable projects [2] - Global spending on clean energy reached a record $2.08 trillion in 2024, with expectations for similar or increased investments in the coming years, indicating solid growth opportunities for the industry [2] Trends Impacting the Industry - Wind energy is a key growth catalyst, with installations in the U.S. increasing by 91% year over year in Q1 2025, and projected installations of 8.1 gigawatts (GW) for the year [3] - The U.S. electric vehicle (EV) market is expected to grow significantly, with a projected compound annual growth rate (CAGR) of 10.5% from 2025 to 2029, driven by rising electrification and declining battery costs [4] Challenges Facing the Industry - Rising costs of renewable installations, particularly due to increased steel prices for wind turbine blades, are posing significant challenges [5] - The U.S. government's heightened import tariffs and the passage of the One Big Beautiful Act (OBBA) have negatively impacted the wind industry, leading to a 50% decline in wind turbine orders in H1 2025 compared to the previous year [6] - The expiration of tax credits under the OBBA is projected to increase the unsubsidized Levelized Cost of Energy (LCOE) by an average of 25%, affecting the near-term growth of alternative energy stocks [6] Industry Performance - The Zacks Alternative Energy industry has outperformed both its sector and the Zacks S&P 500 composite over the past year, with a collective stock surge of 55.7% compared to a 1.3% decline in the Oil-Energy sector [11] - The industry's current valuation, based on the trailing 12-month EV/EBITDA ratio, is 21.24, higher than the S&P 500's 17.55 and the sector's 27.99 [12] Company Highlights - Talen Energy reported a 28.8% year-over-year increase in operating revenues and a 144.4% surge in operating income for Q2 2025, with a long-term earnings growth rate of 15.5% [17][18] - Brookfield Renewable plans to invest up to $1 billion to increase its equity interest in Isagen S.A., with a Zacks Consensus Estimate for 2025 earnings per share indicating a loss of 30 cents, an improvement from the previous year's loss of 89 cents [19][20] - Bloom Energy's revenues improved by 19.5% in Q2 2025, with an adjusted gross margin expansion of 650 basis points to 28.2% [23]

Group 1 - Brookfield Renewable Corporation (BEPC) is a notable stock within the Oils-Energy sector, currently ranked 16 in the Zacks Sector Rank among 241 companies [2] - BEPC has a Zacks Rank of 2 (Buy), indicating a positive outlook with a 53.8% increase in the consensus estimate for its full-year earnings over the past quarter [3] - Year-to-date, BEPC has returned 20%, significantly outperforming the average gain of 0.9% for the Oils-Energy sector [4] Group 2 - BEPC is part of the Alternative Energy - Other industry, which includes 41 stocks and is currently ranked 165 in the Zacks Industry Rank; this industry has an average gain of 32.5% this year, indicating BEPC is slightly underperforming [6] - Flotek Industries (FTK), another stock in the Oils-Energy sector, has outperformed with a year-to-date increase of 45.4% and also holds a Zacks Rank of 2 (Buy) [4][5] - The Oil and Gas - Field Services industry, to which FTK belongs, is ranked 204 and has seen a decline of 11.4% year-to-date [7]

Financial Data and Key Metrics Changes - The company reported funds from operations (FFO) of $371 million or $0.56 per unit, representing a 10% year-over-year increase driven by strong hydro generation and growth initiatives [18][20] - FFO per unit is expected to continue growing at a target rate of over 10% for the year [8] - The company ended the quarter with $4.7 billion of available liquidity, maintaining a strong financial position [20][21] Business Line Data and Key Metrics Changes - The hydroelectric segment saw FFO increase by over 50% year-over-year, attributed to strong performance from U.S. and Colombian fleets [18][19] - The Distributed Energy, Storage, and Sustainable Solutions segments delivered FFO growth of nearly 40% year-over-year, driven by Westinghouse's performance [19] - Wind and solar segments reported flat FFO compared to the prior year due to asset dispositions and gains from the previous year [19] Market Data and Key Metrics Changes - The company has commissioned 2.1 gigawatts of new renewable energy capacity in the quarter and anticipates a record 8 gigawatts in 2025 [9] - The demand for power is exceptionally strong, necessitating the development of various energy generation forms [10][12] - The company is well-positioned to meet energy demand with a pipeline of over 230 gigawatts of projects, including significant battery storage solutions [8][10] Company Strategy and Development Direction - The company signed a Hydro Framework Agreement with Google to deliver up to 3 gigawatts of hydroelectric capacity, reinforcing its position as a partner for large power buyers [11][12] - The strategy includes expanding capabilities in low-cost wind and solar while emphasizing critical technologies like hydro, nuclear, and batteries [13][17] - The company plans to continue investing in critical technologies to support growing energy demand and grid reliability [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in securing tax credit eligibility for U.S. projects through 2029, despite potential regulatory changes [36][38] - The outlook remains robust, driven by strong demand for power and the need for diverse energy solutions [10][12] - Management highlighted the importance of partnerships with large tech companies to meet evolving energy needs [79] Other Important Information - The company completed $19 billion in financings year-to-date, optimizing its capital structure and extending maturities [21][23] - The acquisition of Nayeon significantly expanded the company's battery capabilities, making it one of the largest operators in the sector [16][52] Q&A Session Summary Question: Can you accelerate the pace of development in light of recent capacity auction results? - Management indicated that the supply-demand imbalance is evident and they are pulling projects forward as quickly as possible while leveraging M&A capabilities and partnerships with large power buyers [26][27] Question: What is the hydro M&A environment in the U.S.? - Management noted that the hydro market is becoming more liquid, and they are well-positioned to pursue opportunities that fit their framework agreements [39][40] Question: How are you adapting to challenges in the U.S. market? - Management emphasized the ongoing consideration of interconnection speed in development activities and the importance of existing platforms that provide preferential positions [46][48] Question: What are the key milestones for nuclear development? - Management highlighted the focus on new build nuclear projects in the U.S. and the significant demand expected from both government and corporate sectors [70][75] Question: How have discussions with tech companies changed regarding new facilities? - Management observed an increased appetite for diverse technologies beyond wind and solar, with a focus on broader relationships to derisk growth paths for tech companies [78][79]

Financial Data and Key Metrics Changes - The company reported funds from operations (FFO) of $371 million or $0.56 per unit, representing a 10% year-over-year increase driven by strong hydro generation and growth initiatives [16] - FFO per unit is expected to continue growing at a target rate of over 10% for the year [6] - The company ended the quarter with $4.7 billion of available liquidity, indicating strong financial flexibility [18] Business Line Data and Key Metrics Changes - The hydroelectric segment saw FFO increase by over 50% from the prior year, attributed to strong performance from U.S. and Colombian fleets [16] - The Distributed Energy, Storage, and Sustainable Solutions segments delivered FFO growth of almost 40% year-over-year, driven by Westinghouse's performance in the nuclear sector [18] - Wind and solar segments experienced flat FFO compared to the prior year due to asset dispositions and gains from the previous year [17] Market Data and Key Metrics Changes - The company has commissioned 2.1 gigawatts of new renewable energy capacity in the quarter and anticipates bringing on approximately 8 gigawatts in 2025, a record for the business [7] - The company is witnessing a significant supply-demand imbalance for energy across its operational regions, necessitating substantial expansion in energy generation [5] Company Strategy and Development Direction - The company is focusing on a safe harboring strategy to secure tax credit eligibility for nearly all U.S. projects through 2029 [5] - The company aims to deepen relationships with large power buyers, leveraging its diversified portfolio across hydro, wind, solar, nuclear, and battery storage [8] - The company is actively pursuing M&A opportunities to enhance its hydro capabilities and meet growing energy demand [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the robust demand for power, which is expected to drive the development of all forms of energy [8] - The company is well-positioned to meet exponential energy demand with a pipeline of over 230 gigawatts of projects, including significant battery storage solutions [6] - Management highlighted the increasing sophistication of large tech companies in seeking baseload power solutions, indicating a shift in procurement strategies [30] Other Important Information - The company successfully executed its largest project financing, raising EUR 6.3 billion for an offshore wind development project in Poland [19] - The company is committed to delivering long-term total returns of 12% to 15% for investors while maintaining disciplined capital allocation [20] Q&A Session Summary Question: Can you accelerate the pace of development in light of recent capacity auction results? - Management indicated that the supply-demand imbalance is a persistent issue and they are pulling forward projects as quickly as possible while leveraging M&A capabilities and partnerships with large power buyers [23][25] Question: What is the hydro M&A environment in the U.S.? - Management noted that the hydro market is becoming more liquid and they are positioned to pursue opportunities that fit their framework agreements with confidence [36][37] Question: How are discussions with tech companies changing regarding new facilities? - Management observed an increased appetite for diverse energy solutions beyond wind and solar, with a focus on integrated relationships that span multiple energy sources [77][78] Question: What are the key milestones for nuclear development? - Management highlighted the U.S. government's intention to start construction on 10 new reactors by the end of the decade, positioning Westinghouse as a key player in this initiative [70][73]

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This Supplemental Information contains forward-looking statements and information, within the meaning of Canadian securities laws and "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, Section 21E of the U.S. Securities Exchange Act of 1934, as amended, "safe harbor" provisions of the United States Private Securities Litigation Reform ...

Core Viewpoint - Brookfield Renewable Corporation (BEPC) is identified as a strong momentum stock with a Momentum Style Score of A and a Zacks Rank of 2 (Buy), indicating potential for near-term gains [3][4][12]. Momentum Performance - BEPC shares have increased by 10.72% over the past week, while the Zacks Alternative Energy - Other industry remained flat during the same period [6]. - Over the past month, BEPC's price change is 14.08%, significantly outperforming the industry's 1.99% [6]. - In the last quarter, BEPC shares rose by 29.83%, and over the past year, they gained 29.6%, compared to the S&P 500's increases of 18.84% and 15.9%, respectively [7]. Trading Volume - The average 20-day trading volume for BEPC is 879,061 shares, which serves as a bullish indicator when combined with rising stock prices [8]. Earnings Estimates - In the last two months, one earnings estimate for BEPC has been revised upward, while none have been revised downward, improving the consensus estimate from -$0.65 to -$0.30 [10]. - For the next fiscal year, one estimate has also moved upwards with no downward revisions [10].